Indian Ferro Chrome Export to China Up by 45% in Oct’16

Indian Ferro Chrome exports to China increased by around 45% in Oct’16 in comparison to Sep’16.

Ferro chrome exports from India stood at 47,664 MT in Oct’16 which decreased by 9% M-o-M. In Sep’16 Indian ferro chrome exports stood at 52,398 MT.

In Oct’16 major increase in ferro chrome exports was witnessed to China, with a total quantity of 13,776 MT exported, whereas, in Sep’16 it was only 9,488 MT.

On the other hand, in Sep’16 total export to Taiwan was 11,295 MT which decreased in Oct’16 to 7,090 MT. Similarly, exports have also decreased to South Korea, Japan, U.S.A and Italy in Oct’16.

Quantity in MT
Source: Custom Data
Provisional Data

Indian Ferro Chrome Export Market

Spot prices of India-origin high carbon ferro chrome (58-60% Cr) was in the range of 105-107 cents/lb CIF China.

Large steel mills in China generally increased purchase prices for high carbon ferro chrome this week. In particular, Baosteel raised their purchase price for the material by RMB 2500/MT to RMB 9,500/MT by cash, VAT included and delivered to plants. Affected by the increase in purchase price by Stainless Steel mills, prices for Ferro Chrome and Chrome Ore in China have gone up accordingly. However, market sources in India confirmed that Chinese traders are reluctant and yet to accept any further increase in offer prices. Although, Indian producers are confident that higher prices will soon be achievable in China as the cost of production in China is set to go up further with increase in Chrome Ore prices at their ports.

The spot price of high-carbon ferro chrome imported into Japan is at 92 cents/lb CIF Japan, unchanged from last week due to an absence of reported deals, offers or bids.

Domestic Ferro Chrome Market Strengthens Furthers on Lower Supply

The sharp climb in ferro chrome prices continued and sentiment remained bullish amid a scarcity of supply.

SteelMint weekly assessment for grade 60% is around INR 92,000/MT (Ex-Odisha). However, few producers were also heard to be quoting around INR 95,000/MT.

Sources revealed that most ferro chrome producers are booked with orders and they do not have material to offer in the open market. “Scarcity of material is the reason for price surge in the market”, said a producer based in Odisha.

SteelMint learnt from market sources that ferro chrome prices should not fall, as higher offer prices have found acceptance in the market amid talk of further rise in prices.